Free CAMS7 Questions for ACAMS CAMS7 Exam

Question #1

Which of the following best describes the degree of cooperation between regulatory authorities, law enforcement agencies, and Financial Intelligence Units (FIUs) during money laundering investigations, including cross-border cases?

A. FIUs primarily handle reporting from financial institutions, while regulatory authorities and law enforcement agencies are limited to enforcing domestic AML laws without international cooperation.

B. Regulatory authorities, law enforcement agencies, and FIUs share intelligence and coordinate efforts to streamline cross-border money laundering investigations, often through formal agreements.

C. Law enforcement agencies and FIUs only cooperate during domestic investigations, leaving cross-border investigations to international organizations like INTERPOL.

D. Regulatory authorities primarily work independently but share information when requested by international law enforcement agencies.

Discussion 0

Correct Answer: B Vote an answer

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Question #2

According to PinCEN. when a financial institution (PI) identities a suspicious activity that necessitates suspicious activity report (SAR) filing, the SAR supporting documentation should (Select Two.)

A. be saved in a single separate file with hard copies stored in a fireproof cabinet.

B. always be limited to account name, account details, and transaction records.

C. include all documents or records that assisted the Fl in making the determination that the activity required a filing.

D. have written policies and procedures to maintain supporting documentation.

Discussion 0

Correct Answer: C,D Vote an answer

Question #3

Which key financial crime risks relate to the remote gambling sector specifically? (Select Three.)

A. Customers not being physically present for identification purposes

B. Customers depositing large amounts of cash

C. Customers making numerous low-level transactions to avoid enhanced due diligence

D. Customers betting more than they can afford

E. Customers using anonymous prepaid cards

Discussion 0

Correct Answer: A,C,E Vote an answer

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Question #4

A financial crimes risk appetite statement describes:

A. the purpose of an organization's financial crimes compliance program.

B. how an organization determines its key risk and performance indicators.

C. how an organization defines Its risk-based approach.

D. the level and type of risk the organization is willing to take to meet its objectives

Discussion 0

Correct Answer: D Vote an answer

Question #5

Which external data source is most reliable for verifying beneficial ownership during onboarding?

A. Publicly available information on non-government data repositories

B. Adverse media databases

C. Beneficial ownership registers available in country of incorporation of entity

D. Credit reference agencies

Discussion 0

Correct Answer: C Vote an answer

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Question #6

Which situation BEST demonstrates effective implementation of a risk-based AML approach?

A. Conducting enhanced monitoring only for low-risk accounts

B. Eliminating monitoring for long-term customers

C. Applying identical monitoring rules to every customer

D. Allocating greater controls to higher-risk customers and products

Discussion 0

Correct Answer: D Vote an answer

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Question #7

The transaction monitoring system of a bank generated an alert for a car wash client. After making large cash deposits, the client orders international wire transfers. Which additional circumstances would make the case more suspicious?

A. The beneficiary of the wire transfers is a foreign company whose shareholders and director are other companies

B. The beneficiary of the wire transfer is a resident of a grey-list country

C. The beneficiary of the wire transfers is a resident of a foreign country bearing the same family name as the business owner

D. The wire transfers are for different amounts but with the same beneficiary

Discussion 0

Correct Answer: A Vote an answer

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Question #8

What are the rules imposed by the Office of Foreign Assets Control (OFAC) for legal entities and persons related to the US? (Select Two.)

A. A subsidiary of a legal entity of the US, which is formally registered in a foreign country, is exempt from OFAC rules.

B. Nationals of the US must comply with OFAC rules, regardless of where they are located in the world.

C. Any foreign corporation is also penalized if it conducts transactions with sanctioned countries under OFAC rules.

D. The head office of a foreign legal entity which has a branch in the US does not need to comply with OFAC rules.

E. A foreign individual visiting the US for a short vacation is obligated to follow OFAC rules.

Discussion 0

Correct Answer: B,C Vote an answer

Question #9

Why are shell companies frequently associated with money laundering schemes?

A. They reduce currency conversion fees

B. They simplify payroll administration

C. They can obscure ownership and financial flows

D. They always operate illegally

Discussion 0

Correct Answer: C Vote an answer

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Question #10

An insurance company receives an application for a high-value life insurance policy from a new non- resident client. The payout instruction is linked to an offshore trust in another jurisdiction to which the client has no obvious connection. The client insists on paying premiums via multiple transactions to "avoid bank charges." The client is reportedly unemployed with minimal assets, which is inconsistent with the policy value. Which financial crime risk should the insurance company be most concerned with?

A. Fraud

B. Market abuse

C. Money laundering

D. Sanctions evasion

Discussion 0

Correct Answer: C Vote an answer

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Question #11

According to the Financial Action Task Force (FATF) methodology, which situations would require a financial institution (FI) to consider filing a suspicious activity report?

A. A transaction involves funds exchanged from crypto to fiat currencies.

B. A FI identifies the payer is a dealer in precious metals or stones.

C. A beneficiary of a transaction is a politically exposed person.

D. A FI is unable to verify the relevant customer due diligence documents.

Discussion 0

Correct Answer: D Vote an answer

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